AUDIT 2012/04/19 Minutes
The City of Lake Forest
AUDIT COMMITTEE
Proceedings of the April 19, 2012 Meeting
5:15 p.m. – City Hall, 220 E. Deerpath
City Council Conference Room
Minutes
I. Call to Order and Roll Call
Chairman Jacobs called the meeting to order at 5:15 p.m. Audit Committee Members
present: Chairman Jacobs, Marwede, Moreno and Finance Committee Chairman
George Pandaleon. Absent: Mayor Cowhey, Ms. Krebs and Ms. Reich. Quorum present.
City staff present: Robert Kiely, City Manager; Diane Hall, Assistant Finance Director; Todd
Nahigian, Croya Manager and Marla Schachtel, Senior Resources Manager.
Others present: Les Hammar, Senior Foundation Treasurer; Paul Lemieux, Senior Resource
Commission Chairman; David Cain, Milburn Cain & Co., Linda Abernethy, Partner with
McGladrey & Pullen, LLP.
Number present in the audience: none.
II. Consent Agenda
Approval of minutes from Audit Committee held on October 20, 2011
Ms. Moreno made a motion to approve the October 20, 2011 minutes. The motion was
seconded by Mr. Marwede. The motion carried unanimously by voice vote.
McGladrey and Pullen 4-30-12 Engagement Letter
The Committee reviewed the engagement letter with Ms. Linda Abernethy, Partner with
McGladrey & Pullen.
A motion was made by Ms. Moreno, seconded by Mr. Marwede, to recommend to the
City Council to accept the engagement letter. The motion carried unanimously by
voice vote.
III. Lake Forest – Lake Bluff Senior Citizen Foundation:
Mr. Les Hammer discussed the primary purpose of the Foundation is to raise funds to assist
the Senior Center. He discussed the nature of the assets held by the Foundation. He
stated that their biggest concern was that they currently hold $700,000 in bonds and that
a large change in interest rates will affect their portfolio. He reviewed the current internal
controls that are in place. Mr. Kiely stated that a full building review needs to be
completed to create a strategic plan for future repairs. He stated that areas that are
responsibility of the City need to be identified. He stated that the Senior Advocate will
need to be addressed at a later time.
IV. Lake Forest Croya Foundation
Mr. Nahigian stated that the Foundation was founded to raise funds to expand the
Croya Facility. He stated that the Foundation has not completed any large fund raising
since the completion of the new facility. He stated that the Foundation provides for a
portion of the Administrative Assistant’s salary and the temporary salaries. He stated that
the Foundation also provides annual scholarships and for equipment for Croya. Mr. Cain
reviewed the financial statements for the Foundation. He stated that an audit is not
completed due to the fact that the assets are below the threshold requiring an annual
audit. He stated that a compilation was completed. Mr. Nahigian stated that the
Audit Committee Meeting
Minutes – April 19, 2012
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Foundation needs a cause to grow. He stated that one possible cause is to fund an
advocate to help with the kids.
V. Other Business
None
VI. Adjournment
There being no further business, a motion was made by Mr. Marwede to adjourn the
meeting. The motion was seconded by Ms. Moreno. The motion was approved
unanimously by voice vote. The meeting was adjourned at 6:20 p.m.
Respectfully submitted,
Diane Hall
Assistant Finance Director